Peacock v. Alexander

253 S.W.2d 716, 2 Oil & Gas Rep. 298, 1952 Tex. App. LEXIS 1897
CourtCourt of Appeals of Texas
DecidedDecember 4, 1952
Docket6645, 6649
StatusPublished

This text of 253 S.W.2d 716 (Peacock v. Alexander) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peacock v. Alexander, 253 S.W.2d 716, 2 Oil & Gas Rep. 298, 1952 Tex. App. LEXIS 1897 (Tex. Ct. App. 1952).

Opinion

HALL, Chief Justice.

The trial court rendered summary judgment in' cause No. 6645, construing a certain mineral deed in favor of appellees Alexander and wife against appellant J. H. Peacock; and in cause No. 6649 the trial court entered a summary judgment in favor of appellee J. H. Peacock and against appellants P. H. Alexander and wife, holding the appellants’ cause of action barred by the fortr-year statute of limitation, R. S. Art. 5529, in so far as Alexanders’ cause of action sought cancellation of the royalty deed for (1) fraud and misrepresentation, (2) for failure of consideration and (3) for want of delivery.

The above causes of action' are here consolidated for the reason that they relate to the same subject matter, between the same parties, and together constituted cause No. 18975 in the trial court. Alexander and wife’s suit against Peacock was for removal of cloud from title of Alexanders’ land cast by a royalty deed executed by Alexander and wife to Peacock, covering 20 acres of land, dated September 17, 1936, and duly filed for record. They also sought to have the royalty deed cancelled for failure of consideration, for want of delivery and for fraud.

The record shows that on the 20th day of August, 1942, Alexander and wife filed suit against Peacock, being cause No. 15,300, seeking to set aside the royalty deed from them to Peacock, alleging that it was procured by fraud, for lack of delivery and failure of consideration. That suit was dismissed from the docket of the District Court of Cherokee County on August 19, 1944 for want of prosecution. The present suit No. 18975 was filed by Alexander and wife against Peacock on February 26, 1951, and as stated above, in addition to the cause of action asserted in the original suit No. 15,300, sought cancellation of the royalty deed for the reason that said deed by its own terms had expired and was a cloud on their title.

By two judgments entered the same day, to-wit, January 14, 1952; one in favor of appellant Alexander and wife cancelling the royalty deed, and the other in favor of Peacock, holding that the cause of action of Alexander and wife against Peacock for fraud, failure of consideration1, and nondelivery of the royalty deed was barred by the four-year statute of limitation.

We have concluded that a determination of Peacock’s Point No. 1 in cause No. 6645, *718 to the effect that “the trial court erred in granting the motion for summary judgment of appellees (Alexander and wife) because of the fact that the royalty deed from appellees to appellant (Peacock) is a perpetual royalty instrument by its terms and according to the language thereof and the rules of construction covering the construction of deeds,” raises the controlling issue to be determined herein. If the royalty deed from Alexander and wife to Peacock had by its own' terms expired, then it will not be necessary to discuss Alexanders’ points with respect to the alleged errors of the trial court in finding his cause of action as to all matters raised by them, except the construction of the royalty deed, barred by limitation. The two paragraphs in the royalty deed pertinent here are:

“And said above described lands being now under an oil and gas lease originally executed in favor of L. A. Grelling et al. and now held by Humble Oil & Refining Co., it is understood and agreed that this sale is made subj ect to said lease, but covers and includes 20 royalty acres of all the oil royalty and gas rental or royalty due and to be paid under the terms of said lease.

“It is agreed and understood that none of the money rentals which may be paid to extend the term within which a well may be begun under the terms of said lease is to be paid to the said J. H. Peacock, and in the event that the said above described lease for any reason becomes can-celled or forfeited, then and in that event, the lease interests and all future rentals on said land, for oil, gas and mineral privileges shall be owned by P. H. Alexander et ux. ozming all interest in all oil, gas and other minerals vn and upon said land, together with all interest in all future rents.” (Italics ours.)

From the above paragraphs it clearly appears that the royalty deed from Alexander to Peacock covering the 20 acres was subject to the lease, originally made by the Alexanders to Grelling et al., but at the time of the execution of the royalty deed was owned by the Humble Oil & Refining Company, and is hereafter referred to as Humble Lease. It is conceded that the Humble Lease has long .since been' released to Alexander and wife by the Humble Oil & Refining Company. In fact the record shows that the oil and gas lease was released to the Alexanders some twenty-six days after the execution by them of the 20-acre royalty deed to Peacock. It is to be observed further that the royalty deed plainly states in the second paragraph copied above “and in the event that the said above described lease (Humble Lease) for any reason becomes cancelled or forfeited, then and in that event, the lease interests and all future rentals on said land, for oil, gas and mineral privileges shall be owned by P. H. Alexander et ux. owning all interest in all oil, gas and other minerals in and upon said land, together with all interest in all future rents.” Thus the royalty deed fixes the event ending its existence, namely, the termination by forfeiture or otherwise of the Humble Lease. We do not think that any other interpretation can be given to this plain provision in the royalty deed.

The royalty deed specifically states that it deals with royalty. Our Supreme Court holds that royalty means the ⅛ of the minerals reserved by the lessor in the oil and gas lease. State National Bank of Corpus Christi v. Morgan, 135 Tex. 509, 143 S.W. 2d 757, and cases there cited. The deed could not legally deal with any portion of the ⅞ mineral interest held at the time by the Humble Oil & Refining Company. It recognized the existence of the Humble leasehold interest. Moreover, at the. time the royalty deed was made, Alexanders owned nothing but the ⅛ reserved royalty.

“The object of construing any deed is to ascertain the intention of the parties as expressed in the deed itself and such intention expressed therein is of controlling importance.” Totton v. Smith, 131 Tex. 219, 113 S.W.2d 517, 518. When the above rule is applied to the royalty deed under consideration here it appears by its express terms that it expired with the Humble Oil and Gas Lease set out above. We are supported in this conclusion by Maxwell v. Hunter, 5 Cir., 116 F.2d 260, wherein a *719 royalty deed in exact language as the royalty deed here was held to have expired with the lease covering the land at the time the royalty deed was executed and to which it was subject. See also MacDonald v. Sanders, Tex.Civ.App., 207 S.W.2d 155 (writ refused, N.R.E.) ; Ashcroft v. Fleming, Tex.Civ.App., 168 S.W.2d 304; same case, Fleming v. Ashcroft, 141 Tex. 41, 175 S.W.2d 401.

Appellant, among other authorities, cites Kokernot v.

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Fleming v. Ashcroft
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Richardson v. Hart
185 S.W.2d 563 (Texas Supreme Court, 1945)
Richardson v. Hart
183 S.W.2d 235 (Court of Appeals of Texas, 1944)
Totton v. Smith
113 S.W.2d 517 (Texas Supreme Court, 1938)
Ashcroft v. Fleming
168 S.W.2d 304 (Court of Appeals of Texas, 1942)
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Maxwell v. Hunter
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Bluebook (online)
253 S.W.2d 716, 2 Oil & Gas Rep. 298, 1952 Tex. App. LEXIS 1897, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peacock-v-alexander-texapp-1952.